Amar Raja Batteries announces ‘Energy and Mobility’ strategy; to focus on core sectors, diversify into new Energy sectors
Hyderabad: Amara Raja Batteries Ltd. (ARBL) on Monday announced expansion of its Lead Acid Batteries business and the establishment of a New Energy SBU encompassing Lithium cell and battery pack, EV chargers, Energy Storage Systems, Advanced Home Energy Solutions and related products and services.
These initiatives are announced under the company’s new strategic focus ‘Energy and Mobility’ to accelerate its future growth.
“While the Board unanimously believes New Energy will provide substantial thrust over the coming decade, there remains a strong conviction on the long-term potential of the Lead Acid Batteries business. The vital role played by lead acid technology across a variety of applications provide significant growth opportunity in both the domestic and international markets. On the other hand, the emergence of lithium as an alternative energy storage technology opens up new and exciting growth opportunities” the company said.
The Board has agreed that the Company should continue to invest and expand the Lead Acid Batteries business in which the Company is a significant player in many customer segments.
The new strategy, aimed at tapping opportunities in home inverter, motive power and unorganized segments, is expected to further consolidate the Company’s existing strengths and market share. The Company believes that the Lead Acid Batteries business will continue to grow in India owing to the buoyant demand from automotive, industrial, telecom and new emerging segments like data centres.
“After a careful review of the global business opportunities, the ARBL Board has decided to future-proof our business by repositioning ARBL as an Energy and Mobility player. The Board believes that ARBL has to invest in a portfolio of businesses to maintain its technological and business leadership. Over the years, we have built an active distribution network, customer trust and relationship with clear emphasis on maximizing value within lead acid technology. The Company is now well poised to build on these strengths and create multiple new growth engines in the New Energy space” said Vice Chairman, Mr. Jayadev Galla on the company’s new stratergy.
Meanwhile, the company’s Founder Chairman Ramachandra Galla has decided not to seek reappointment. Jayadev Galla to become Chairman of the Board.